April 17, 2015
Colorado General Assembly
200 E. Colfax Avenue Denver 80203
Dear members of the Colorado General Assembly,
We, the undersigned Colorado nonprofit organizations, employees, and volunteers urge you to support HB 15-1314, the Colorado Endowment and Institutional Funds Tax Credit. Endowments allow nonprofits and foundations to preserve principal and spend income to make grants or provide direct services. Endowment funds enable nonprofits and foundations to sustain their operations and support their long-term goals by investing assets to grow in value over time. The bill creates a 25% tax credit for individual donations of cash, property, or securities to eligible funds held by a nonprofit or community foundation. Eligible funds are institutional funds, consisting of board-designated assets, and
endowment funds, which are designated by donors. The maximum credit amount is $25,000. To use the credit, donors must have tax liability and cannot claim another state tax credit for the same donation.
This credit would help nonprofits and foundations serve the community by:
• Increasing charitable giving to these funds. Each $1 awarded in tax credits leverages $4 in donations.
• Raising awareness of the option to give to endowments. Donors’ gifts are invested to grow in value over time rather than being spent immediately on programs
• Helping nonprofits benefit from generational wealth transfer. These credits encourage donors to make long-term gifts.
• Growing nonprofits' savings. Nonprofits, community foundations, or community foundations on behalf of nonprofits can set assets aside for investment and future use.
With your support, Colorado would join five other states (IA, KY, MD, MT, and ND) in enjoying the benefits of an endowment tax credit. In Iowa, for example, 6 million in credits leveraged $24 million in giving to community foundations in 2014. Similarly, Montana nonprofits received $123 million in gifts between 1997 and 2010; they spent an estimated $600,000 each year for the benefit of
charitable causes. Although credits in these other states have been adopted more
We rely on our endowment to help us weather tough years. An added incentive to give to the endowment would strengthen our organization's future.
– Colorado Neurological Institute, Englewood
This tax credit will be a great incentive for our donors to make larger, more permanent financial gifts that will perpetually support the children who need these services the most. This would be a huge benefit for serving the at-risk children of Colorado on an ongoing basis.
– Tennyson Center for Children, Denver
HB 15-1314 provides an incentive for individual donors to set money aside in support of nonprofits they believe in, increasing long-term sustainability for our sector to successfully meet their missions.
– Center for Nonprofit Excellence, Colorado Springs We are adding an endowment fund to ensure the longevity of our organization. Having this tax credit would allow us to build this fund with easier tax incentives.
– Community Sailing of Colorado, Denver
This bill is crucial for setting up long-term planning and investment strategies for nonprofits.
– Think360 Arts for Learning, Denver
recently, nonprofits have already used them effectively to increase charitable giving to endowments.
Our communities rely on a strong network of nonprofits and foundations. Please vote yes for HB 15-1314 - the Colorado Endowment and Institutional Funds Tax Credit.
Sincerely,
Adams County Youth Initiative Thornton Alliance for Sustainable Colorado Denver Almost Home, Inc. Brighton Alternatives to Violence, ATV Loveland American Diabetes Association Denver Archuleta County Victim Assistance Program Pagosa Springs Aspen Community Foundation Aspen
Atlantis Community, Inc. Denver Attention Homes Boulder Kristy Bassuener Denver Big Brothers Big Sisters of Colorado Denver Mark Biggers Louisville Boys & Girls Clubs of Larimer County Fort Collins Brent Eley Foundation (Brent's Place) Aurora
Bridge for Pelvic Pain Colorado Springs Alberta Buckman Greenwood Village Center for Nonprofit Excellence Colorado Springs Central City Opera Denver
Clayton Early Learning Denver Colorado AIDS Project Denver Colorado Association of Funders Denver Colorado Association of Libraries Westminster Colorado Behavioral Healthcare Council Denver Colorado Neurological Institute Englewood Colorado Nonprofit Association Denver
Colorado Springs Food Rescue Colorado Springs Community First Foundation Arvada
Community Health Charities Denver Community Reach Center Thornton
The passage of this bill would provide an added "incentive" for individuals to contribute financially to non-profits throughout Colorado. The benefits would be many that culminate in an increased quality of life for individuals and the Colorado Community – Karis Community, Denver All of the non-profit organizations at the Posner Center would benefit from this bill, which would provide an incentive for donors to make long-term investments in foundations and organizations that are working to address the world's most intractable problems.
– The Posner Center for International Development, Denver
Organizations like the Brent Eley Foundation are always looking for ways to ensure long term sustainability so that our programs can continue on well into the future. Endowments are one tool that we can use to ensure that we have sustainable income in the long term. This Tax Credit would help incentivize donors to give to more than just short term operational needs and help put needed emphasis on longevity.
– Brent Eley Foundation (Brent’s Place), Aurora Endowments are critical for our future.
Community Sailing of Colorado Denver Conflict Center Denver Suzanne Crawford Lafayette Denver Art Museum Denver Denver Chorale Denver Denver Jewish Day School Denver Denver Young Artists Orchestra Denver Anita Deshommes Denver Developmental Disabilities Resource Center Lakewood Angela Diaz Mt. Crested Butte
DOOR Denver
Douglas County Community Foundation Castle Rock Peter Droege Denver Easter Seals of Colorado Lakewood Ensight Skills Center Fort Collins Evergreen Chorale Evergreen Food Bank of the Rockies Denver Fort Collins Cat Rescue & Spay/Neuter Clinic Fort Collins Four Mile Historic Park Denver Friends of the Gardens on Spring Creek Fort Collins Friends of the Haven Denver Greeley Transitional House Greeley Eileen Griffin Denver Melody Glinsman Fort Collins Bruce Hallmark Fort Collins Jodi Hartmann Greeley High Plains Library District Greeley High Plains Library District Foundation Greeley
Historic Routt County Steamboat Springs Becky Hoffman Thornton
Lisa Holtsinger Denver HOPE for SCD Lafayette Hopewest Grand junction Housing Colorado Denver
We believe endowments help nonprofits secure their future and ensure their ability to continue to serve the community. We hope the Colorado General Assembly views this bill favorably and reaffirms the importance of philanthropy in our community. Should this bill become law, we are ready to help our Nonprofit Endowment Partners with marketing ideas and tools to maximize the positive effects a state tax credit would have. – Community First
Foundation, Arvada
We are a very small community, but the people of this community have committed their time, energy and investment to support our facility. A significant number of people have strategically given to the endowment and have a high value on such investments and these investors donate end of year because of the tax credits. This bill would increase such investments and help grow our endowment allowing us to be more self-sufficient and not as dependent on grants. – Wray Rehabilitation and Activity Center, Wray We plan to establish an endowment fund and a planned giving program. This bill would increase potential donors' incentives to participate in both of these. The funds will be used to maintain and operate Center Stage, which we make available to a range of community organizations here in the mountain area. – Evergreen Chorale, Evergreen
ICAST Lakewood Jefferson Center for Mental Health Wheat Ridge JEWISHcolorado Denver Karis Community Denver David A Killen Denver Lenna Kottke Boulder Land Trust of the Upper Arkansas Salida La Plata Youth Services Durango
Daniel Lewis Colorado Springs LifeSpark Cancer Resources Lakewood Longmont United Hospital Longmont Lutheran Family Services Rocky Mountains Denver
Kelly May Aspen
Victoria McVicker Denver Mental Health Center of Denver Denver Mesa Partners Program Grand Junction Denise L Moyer Fort Collins Mt. Crested Butte Performing Arts Mt. Crested Butte NARAL Pro-Choice Colorado Denver
North Metro Community Services Westminster Parkinson Association of the Rockies Denver MacKenzie Pacifico Denver
Peak Vista Community Health Centers Foundation Colorado Springs PetAid Colorado Denver
Phamaly Theatre Company Aurora
Pikes Peak Hospice & Palliative Care Colorado Springs Planned Parenthood of the Rocky Mountains Denver
Progressive Health Center Denver Project Angel Heart Denver Pueblo Library Foundation Pueblo Regis University Denver Robert E Loup Jewish Community Center Denver Rocky Mountain Human Services Denver Rose Community Foundation Denver Ashley Rumble Boulder
I am very aware of the difficulties nonprofits have in raising money for operations as well as capital projects. HB 15-1314 will provide one more opportunity for individuals to share their "treasures' with nonprofits in a manner that leverages it to best use. – Donor, Boulder
A tax credit to incentivize donors to generously give legacy gifts would grow our endowment fund, build sustainability for our programming and allow us to plan for the future. For us, knowing that a continued stream of funding would support on-going program services to stabilize young lives and lead them on a path towards self-sufficiency, would fulfill our vision to forever provide "attention not detention" to youth in crisis. – Attention Homes, Boulder The victims of violence served by Alternatives to Violence are the true beneficiaries of this bill. I urge its passage. Our funders will also benefit because they will know that their donations is expanding reach.
– Alternatives to Violence, Loveland
This is an added incentive for people to give. A tax credit is more motivational than just a standard tax deduction. As we establish our endowment, this bill would help educate the general public on the benefit of funding an endowment. – Pueblo Library Foundation, Pueblo
Sacred Heart House of Denver Denver SafeHouse Denver Denver Scleroderma Foundation-Rocky Mountain Chapter Denver
Anna Scott Aspen
Senior Support Services, Inc Denver Barbara Shaw Denver
Woody Sherwood Mt. Crested Butte Abby Laine Sienkiewicz Colorado Springs Sister Carmen Community Center Lafayette
Southern Colorado Community Foundation Pueblo
Step 13 Denver
Julie Strom Denver
St. Vincent de Paul Society Denver Tennyson Center for Children Denver
The Buddy Program Snowmass Village The Community Foundation Boulder
The Connection Youth Center Broomfield The Dairy Center for the Arts Boulder The Gathering Place Denver The Schiff Dance Collective Louisville The Women's Foundation of Colorado Denver Think 360 Arts for Learning Denver Thunder River Theatre Company Carbondale Jamie Lynne Tredeaux Snowmass Village Jody Valente Grand Junction Kelly Waltrip Denver Mary Ellen Williams Golden
Rod Witte Denver
Wray Rehabilitation and Activity Center Wray Korrine Young Denver YWCA of Boulder County Boulder Young Philanthropists Foundation Denver
My organization has always struggled to find donors who will give to an endowment fund. Our donors find value more in supporting program operations. What they don't realize is that endowments are the life line of many organizations. The interest that endowments generate would help Ensight to strengthen our funding structure and provide services and our programs for decades to come.
– Ensight Skills Center, Fort Collins
The creation of this tax credit has the potential to encourage individuals to make significant contributions to nonprofit endowment funds, which in turn will help to ensure the ability of charitable organizations to serve the community in the future. Promoting additional giving to Colorado's diverse set of community foundations, which operate in almost every part of the state, these institutions would be able to invest even more in nonprofits meeting critical needs in health, human services, and improving the lives of Colorado residents.
– Colorado Association of Funders, Denver
This bill will give us added impetus to continue to build our endowment so that, in the future, we will be able to use interest earned from it to create programs to serve those living with mental illness, programs that may be too cutting edge to received traditional funding.
– Mental Health Center of Denver, Denver